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Introducing Direct and Digital Marketing?

Topic: The Database

Welcome Notes:
WELCOME BSBA STUDENTS!!!
Get ready to be challenge…
Learn something new every day by adapting the
‘New Normal’

I. INTRODUCTION:

In this module you will learn what a database is. We will familiarize on what a database looks like, what
it holds, and how to manage the database. Some legal constraints will also be discussed.
II. OBJECTIVES:

At the end of this module, you should be able to:

1. Discuss what is database and picture what it consist;
2. Learn which information a database should hold as well as management issues.
III. PRELIMINARY ACTIVITIES:

Before you proceed to the main lesson, test yourself in this activity.

What is your idea on a data?

_____________________________________________________________________________________
_____________________________________________________________________________________
What do you think are the importance of having a database for businesses?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

GREAT!!!
You may now proceed to the main lesson.
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IV. LESSON PROPER

Based on the preliminary activities, what did you notice about it?
_______________________________________________________
CONGRATULATIONS!
You may now proceed to the lesson.

Let’s Begin!
What is Marketing Database?
 A marketing database can best be pictured as an electronic version of an office filing cabinet,
holding records of customers.
 A database is a collection of data records in a list that can be manipulated by software.
 a data record is the entire set of information that is associated with one customer
 a data field is one item of data within a record: for example, a name, one line of an address, the
number of a type of product bought, and so on

Marketing Database - A marketing database is a list of customers’ and prospects’ records that enables
strategic analysis, and individual selections for communication and customer service support. The data is
organized around the customer.
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Minimum requirements of a Marketing Database
 Primary data
o Customer names
o Addresses of customers
o Details of product/service the organization offers
o Pricing details
o Campaign details
o Channel of distribution
 Secondary data
o Demographics
o Lifestyle information
o Geographical information
 Performance data
o How customer responded
o What customer bought
o How much customer spent
o How did they learn about the product
 External Data
o Data from various agencies

Database Software
 Database software is defined as computer programs designed to store and organize large amounts
of data to make it accessible.
 A database software should be user friendly, menu driven and removes the need of programming
know-how.
 Basic software functions
a. Name and address processing
b. Being able to make selections
c. Have analytical capacity
d. Being able to generate reports
Principles of Data Collection
 Marketers are prone to be flooded by information, which may affect them personally of their work
performance.
 There is a tendency for marketers to ask themselves ‘What data shall I collect?’, rather than ‘What
do I need the database to do?’ The latter question should always be asked first, letting data
requirements flow from the answers.
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Business Data
 Company name
 Corporate telephone preference service (CTPS) - a free service enabling businesses to register
their wish not to receive unsolicited sales and marketing telephone calls.
 Web address
 Job title

Data Sources
 Direct contact companies
o Records held by anyone within the company who deals with customers
o Retail outlets, agents, dealers
o Guarantee forms
o Invoices
o Enquirers, past, present and future
o People who visit your stand when you are at any exhibitions or shows
o Competition entrants
o Responders to sales promotions
 Companies with no direct contact
o List purchase
o Data building scheme
 credit scheme
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 club membership
 warranty registration
 competitions
 free prize draws
 Subscriptions
 Questionnaire responses
 New contact channels
Managing the Database
Four main stages to database management
1. Manage the data sources
2. Manage the data entry
3. Manage the database
4. Manage the application

Managing Data Sources

 Given the competing pressures on the data flowing around the company, it is a very complicated
job getting up to date, accurate data on to the marketing database in the form you want it.
 Senior management commitment to ensure cooperation across departments
 Regular audit trails for items of data to ensure it is handled in a quality way
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 Training for front-end staff to ensure they understand the importance of capturing the data properly
and keeping these standards uniformly
 Introducing systems to ensure customer-inputted data adheres to these standards, even if it is
input poorly
 Service-level agreements between departments for delivery of data to the right standard
 The marketing database to update records regularly by downloading from ‘live’ systems during
quiet periods.
Managing Data Entry
 Verification – the data must be put in accurately and should follow standard procedures
 Validation - checking the accuracy of personal and product data provided by the customer.
 De-duplication - the act of ensuring that the database does not contain duplicate records of the
same customer.
 Merge purge - similar to de-duplication, but with merge purge you are merging two files – perhaps
two external, or one external and your own internal database.
Manage the database

Manage Application
 There are few things more irritating to customers than seeing their name spelt wrongly, and small
details like these are going to reduce the impact of the best thought through strategies and tactics.
Legal Constraints
 In 2012 the Philippines passed the Data Privacy Act 2012, comprehensive and
strict privacy legislation “to protect the fundamental human right of privacy, of communication while
ensuring free flow of information to promote innovation and growth.”
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We had just finished the lesson on the Database. Let’s move on to

the next higher level of activity/es or exercise/s that demonstrates
your potential skills/knowledge of what you have learned.
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V. ANALYSIS, APPLICATION AND EXPLORATION

Name: ______________________________ Course & Section: __________________

A. Instructions. Explain the role of the database in direct marketing. Write your answer on the space
provided.

B. Instructions: What is de-duplication and why is it so important? Write your answer on the provided
space.

C. Instructions: Explain and differentiate in-house data management from bureau data management?
Write your answer on the provided space.

Finally, let us summarize the lesson of what we had discussed today.

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VI. GENERALIZATION

Name: ______________________________ Course & Section: __________________

A. Instructions: Read each situation and write your answer on the space provided.
Situation 1: A manufacturer of golf products was interested in mailing a list of golfers from a lifestyle
database and a list of subscribers to various golf magazines in order to build up a marketing database.
What would he need to do with the data before mailing?

Situation 2: Mr. Jones recently received a mailer forwarded to him from the Royal Mail. It was from his
building society, and contained an address he had vacated over two years previously. He complained
to the company and was told it was a ‘computer error’. Explain how the building society could have
avoided this problem.
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KUDOS!
You have come to an end of Module 2.
OOPS! Don’t forget that you have still an assignment to do.
Here it is….

VII. ASSIGNMENT

Name: ______________________________ Course & Section: __________________

A. Instructions: Research and read the Data Privacy Act of 2012. How do you think it affects the
direct marketing activities? Choose key provisions which affect managing a database. Do not copy-paste all
of it. Answer the questions in bullet form.

CONGRATULATIONS on reaching the end of this module!

You may now proceed to the next module.
Don’t forget to submit all the exercises, activities and portfolio
on ___________________.
KEEP UP THE GOOD WORK.
Well Done!!!